American private equity firm, Blackstone Group is in talks with Jet Airways..

Jet Airways, India’s second largest airline is in serious financial trouble as its losses are mounting.

It has a negative net worth of Rs 7,100 crore ($1.1billion). The airline has Rs 19,743 crore in liabilities, against a total assets of just Rs 12,501 crore.

Jet Airways is keeping afloat only due to free cash flow of some Rs 320 crore as of March 31, 2018.

As the troubled Indian carrier has been exploring options to raise cash, American multinational private equity firm, Blackstone Group said to have in talks to buy a stake in the Airways loyalty programme. Blackstone valued Jet Privilege Pvt, at about ₹3,000 crore ($429 million) to ₹4,000 crore, but the Jet Airways has been seeking for a higher valuation.

JetPrivilege loyalty programme has a membership is about 8 million customers in the year ended 31 March, and posted a profit of ₹177 crore in the last fiscal year. Etihad bought its stake in the loyalty programme in 2013 for about $150 million.

If any deal to be finalised, Blackstone would be interested to see Jet Airways securing adequate funding for its airline operations.